Beira Corridor underexplored
THE Beira Corridor, which is one of Southern Africa’s main transport routes will be a multi-million dollar revenue generating route if fully utilised, Mutare Dry Port’s managing director, Mr Charles Tawazadza has said.
The route links Zambia, Zimbabwe, Malawi, Democratic Republic of Congo (DRC) and Mozambique to the Sea Port of Beira on the Indian Ocean by both road and rail networks.
Mr Tawazadza said most trucking companies have always preferred the Beitbridge Border Post route to South Africa, mostly due to the prolonged civil war in Mozambique.
He said the Beira Corridor has in the past been overshadowed by alternative routes like South Africa’s Port of Durban and Tanzania’s Port of Dar-es-Salaam.
However, for truckers who need a fast, cost effective and no headaches logistics solutions, Mutare is strategically located as it is less than 300km from Beira, compared to Durban which is over 1 500km from Harare, while Dar-es-Salaam is over 2000km away from the capital.
Mr Tawazadza said the New Dispensation is now working on ensuring that Zimbabwe is open for business, which will ensure even more business for all the routes.
“We need to think big and localise our wealth and create millions through our own industry. This is the only way to pragmatically grow our economy into an upper middle-class economy as we also unlock gainful employment for our people and invest in the development of key enabling infrastructure such as roads and railway systems,” said Mr Tawazadza.
He said the current dry port concept is not being fully utilised to exploit the brisk business that the Beira Corridor can create.
A dry pot is an inland port directly connected by road or rail to a seaport and operates as a centre for transhipment of sea cargo to inland destinations.
“The Beira Corridor should not be a Zimbabwe initiative only, but a partnership with Mozambique and other regional countries given that Zimbabwe is a signatory to the African Continental Free Trade Area (AfCFTA).
“Cutting red tape and simplifying customs procedures will bring significant income gains to this route and also promote the ease of movement for people and goods, thereby encouraging competition, investment and the development of intellectual property,” said Mr Tawazadza.
Zimbabwe ratified the AfCFTA agreement on May 24, 2019, a treaty that is expected to spread the landlocked country’s wings beyond the Southern Africa Development Committee (SADC) region to reach a market of more than a billion people on the continent.
The AfCFTA aims to create a single market for goods and services to deepen the economic integration of Africa, with an envisaged combined Gross Domestic Product (GDP) of around US$3,4 trillion.
“When I served as GMS’s managing director between 2010 and 2011, I experienced the potential this route has. I would like to challenge the private sector to be more innovative and continue to adapt new technologies and marketing strategies to improve on such business activities,” said Mr Tawazadza.
He added: “All sectors of the economy must equally take advantage of Zimbabwe’s existing trade arrangements within Africa and beyond. Government also needs to raise the bar in terms of developing economic enablers, especially our railway and road systems,” he said.
Mr Takawira said the Dry Port clears about 300 to 350 haulage trucks per day.
“People’s perception of Beira is still based on operational realities of 15 or more years ago. After dredging the channel and huge infrastructural investments, Beira must be considered as an alternative to Durban and Dar-es-Salaam.
“Principal exports passing through Beira are ores, tobacco, food, cotton and hides. The main imports are liquid fuels, fertilisers, wheat, heavy equipment, textiles and beverages,” said Mr Takawira.
Mr Tawazadza also said there is need to create a Beira Corridor Authority, adding that the entity will be responsible for operating and maintenance of the entire infrastructure.
He said the Authority will work with Mutare Dry Port and key Government ministries.
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